Question
Janom Construction Company forecasts that its sales could grow 12% for the next year 2022, the financial manager is planning to meet the forecasts
Janom Construction Company forecasts that its sales could grow 12% for the next year 2022, the financial manager is planning to meet the forecasts by planning for additional investments. The total amount of dividend paid in 2021 was $10,000. Also the company has credit terms offered for the current year 2021 by its suppliers of 2/5, net 30 days, and the company pays its credits on due date. Below is the financial statements for the current year 2021; Janom Construction Company Income Statement For the Year Ended Dec. 31, 2021 2021 Sales 300,000 Cost of Goods Sold 200,000 Gross Profit 100,000 Selling and G&A Expenses 25,000 Fixed Expenses 10,000 Depreciation Expense 5,000 EBIT 60,000 Interest Expense 18,000 Earnings Before Taxes 42,000 Taxes 16,800 Net Income 25,200 Notes: Tax Rate 40%
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